Business Brokers & M & A Intermediaries & the Art of Letting Go: Value for Your Company, Confidence in the Acquisition
If aor M & A Intermediary is doing his or her job correctly, both sides win. The seller is comfortable with the or acquisition presented and the value placed on his company meets or exceeds expectations. The buyer is confident that his best interest is at heart and the business he is buying will lead to profitability both fiscally and emotionally. The broker’s job is to make this happen; at no point during the merger and acquisition should either party get cold feet and doubt the opportunity.
This is almost impossible to execute in the real world. I have heard manyin CT say that they tell their sellers, “I know you will wake up from a deep sleep the night before you close on your business, in a panic about selling your business, I want you to know this is normal and unavoidable.”
How and alessen this pain, and make the business owner comfortable they are getting a good value, and doing the right thing by selling? Should the M & A intermediary keep the deal together, and make sure the seller does not become his or her biggest liability? Almost all business sellers are emotionally vulnerable. After building a company, nourishing it and watching it grow for sometimes decades, it is extremely hard for many business owners relinquish control of the company’s assets. This includes employees who may have personal ties to the owner. Even when the seller believes he is ready, issues may arise at the eleventh hour which causes him to doubt his decision. A good foresees the issue and relieves the doubt.
The M & A Intermediary makes sure theis ready on day one, before any contracts are signed. They prepare the seller for the process, and make sure they really want to go through with selling the business. He understands the emotional and financial part of the deal and as diligently as he/she prepares the , he prepares the owner for selling; not just by telling him/her that they are getting the best value, but by showing them. The broker lays it out in black and white all the while demonstrating to the seller how the buyer is financially qualified to make the purchase and is, in fact, the best fit for the company on merits of character and knowledge of the industry.
If you are considering selling your business, stop, take a breath, and make sure this is a process you want to undertake. It is not an easy process, and very difficult to stop once the wheels are in motion. Yourwill help you through the process, but you need to be sure.